[HISTORY: Adopted by the Village Council of the Village of
Vicksburg as indicated in article histories. Amendments noted where
applicable.]
[Adopted 8-7-2000 by Ord.
No. 237]
As used in this article, the following terms shall have the
meanings indicated:
The State Housing Development Authority Act, being Public
Act 346 of 1966 of the State of Michigan, as amended, MCLA § 125.1401
et seq., as amended.
The total collections during an agreed annual period from
all occupants of a housing development representing rent or occupancy
charges, exclusive of charge for gas, electric, or other utilities
furnished the occupants.
The Michigan State Housing Development Authority.
A development which contains a significant element of housing
for persons of low- or moderate-income and such elements of other
housing, commercial, recreational, industrial, communal and educational
facilities as the Authority determines to improve the quality of the
development as it relates to housing for persons of low- or moderate-income.
Households which are at or below 60% of the area median income,
adjusted for family size.
A loan to be made by the Authority to the sponsor for the
construction and/or permanent financing of a housing development.
Persons or entities who or which have applied to the Authority
for a mortgage loan to finance a housing development. "Sponsor" includes
all transferees, successors, assigns and heirs.
The housing development, identified as a portion of the project
commonly known as the "Sawmill Creek Apartments," consisting of 24
dwelling units to be constructed in 1998, and the property on which
it shall be constructed, shall be exempt from all property taxes from
and after the date when construction of the project was commenced.
The Village, acknowledging that the sponsor and the Authority have
established the economic feasibility of the housing development in
reliance upon the enactment and continuing effect of this article
and the qualification of the housing development for exemption from
all property taxes and a payment in lieu of taxes as established herein,
and in consideration of the Authority's offer to the sponsor
to make a mortgage loan to finance the sponsor's construction
of the housing development, subject to the satisfaction of all the
terms and conditions of its loan commitment to the sponsor, hereby
agrees to accept payment of a service charge of public services in
lieu of all property taxes from the sponsor. The annual payment in
lieu of taxes shall be established at an amount equal to 4% of annual
shelter rent in year one through year nine, then increasing each year
by 1/4% to a maximum of 5 3/4% of annual shelter rent in year
16 and remaining at 5 3/4% of the annual shelter rents for the
named project as long as this article is in effect. However, the annual
payment in lieu of taxes shall never be less than $5,595. The annual
service charge shall be the applicable percentage of the annual shelter
rents or the tax on the property on which the project is located for
the tax year before the date construction commenced, whichever is
greater. Sponsor shall pay the annual service charge for a period
of 16 years of operation, beginning at commencement of construction
of the project.
The service charge in lieu of taxes, as determined according
to this article, shall be payable in the same manner as general property
taxes are payable to the Village.
The sponsor shall verify annual shelter rent revenues to the
Village with a statement of profit and loss or other form of financial
documentation deemed suitable by the Village.
[Amended 6-4-2001 by Ord.
No. 238]
This article shall remain in effect and shall not terminate
so long as a mortgage loan remains outstanding and unpaid or the State
Housing Development Authority has any interest in the property, provided
that construction of the housing development commences within one
year of the original effective date of this article. Upon satisfaction
in full of the Authority mortgage loan, this article shall automatically
terminate.
[Adopted 6-18-2001 by Ord. No. 239 (Ch. 18, Art. III, of the 1995 Village
Code)]
As used in this article, the following terms shall have the
meanings indicated:
The State Housing Development Authority Act, being Public
Act 346 of 1966 of the State of Michigan, as amended.
The total collections during an agreed annual period from
all occupants of a housing development representing rent or occupancy
charges, exclusive of charges for gas, electricity, heat, or other
utilities furnished to the occupants.
The Michigan State Housing Development Authority.
As defined by the U.S. Department of Housing and Urban Development
in regulations promulgated pursuant to the U.S. Housing Act of 1937,
as amended.
A development which contains a significant element of housing
for persons of low income and such elements of other housing, commercial,
recreational, industrial, communal, and educational facilities as
the Authority determines improve the quality of the development as
it relates to housing for persons of low income.
A loan to be made by the Authority to the sponsor for the
construction and/or permanent financing of the housing development.
For definition of class (i.e., elderly, family, handicapped,
etc., to which this article shall apply).
Person(s) or entities which have applied to the Authority
for a mortgage loan to finance a housing development.
Fuel, water, sanitary sewer service and/or electrical service
which are paid by the housing development.
It is determined that this exemption is project specific and
is multifamily residential, which is a type of project financed or
assisted pursuant to the Act. It is further determined that Saw Mill
Creek Apartments Phase II is a project which is within the Act.
The housing development identified as Saw Mill Creek Apartments
Phase II and the property on which it shall be constructed shall be
exempt from all property taxes from and after the commencement of
construction. The Village of Vicksburg, acknowledging that the sponsor
and the Authority have established the economic feasibility of the
housing development in reliance upon the enactment and continuing
effect of this article and the qualification of the housing development
for exemption from all property taxes and a payment in lieu of taxes
as established in this article, and in consideration of the sponsor's
offer, subject to receipt of a mortgage loan from the Authority to
construct, own and operate the housing development, agrees to accept
payment of an annual service charge for public services in lieu of
all property taxes. The annual service charge shall be equal to 4%
of annual shelter rent in year one through year nine, then increasing
each year by 1/4% to a maximum of 5 3/4% of annual shelter rent
in year 16 and remaining at 5 3/4% of the annual shelter rents
for the named project as long as this article is in effect. However,
the annual payment in lieu of taxes shall never be less than $5,595.
The annual service charge shall be the applicable percentage of the
annual shelter rents or the tax on the property on which the project
is located for the tax year before the date construction commenced,
whichever is greater.
Notwithstanding § 417-10, the service charge to be paid each year in lieu of taxes for the part of the housing development which is tax exempt and which is occupied by other than low-income persons or families shall be equal to the full amount of the taxes which would be paid on that portion of the housing development if the housing development were not tax exempt.
Notwithstanding the provisions of Section 15(a)(5) of the Act
to the contrary, a contract between the Village of Vicksburg and the
sponsor with the Authority as third party beneficiary under the contract,
to provide tax exemption and accept payments in lieu of taxes, as
previously described, is effectuated by enactment of this article.
The annual service charge in lieu of taxes as determined under
this article shall be payable in the same manner as general property
taxes are payable to the Village of Vicksburg, except that the annual
payment shall be paid on or before September 14 of each year.
This article shall remain in effect and shall not terminate
so long as the mortgage loan remains outstanding and unpaid or the
Authority has any interest in the property, provided that construction
of the housing development commences within one year from the effective
date of this article.
